Q2 snap: strong broad-based beat
MS delivered a 16% EPS beat thanks to strong revenue growth, particularly in Institutional Securities. As with peers, Equity trading was very strong, up 15% YoY, but FICC was also up 12% to $1.4bn driven by strength in commodities and credit products. IB fees were 16% above consensus with ECM revenues up 34% YoY. The only slight disappointment was a 2% miss in Wealth Management revenues but lower transactional revenues were actually flagged by management. The efficiency ratio of 70.7% was 130bp below consensus. Overall, the quality seems very good and an ROE of 13.0% is a strong result.Morgan Stanley is a financial holding company. Through its subsidiaries and affiliates, the company advises, and originates, trades, manages and distributes capital for, governments, institutions and individuals. The company's segments are: Institutional Securities, which provides investment banking, sales and trading, lending and other services; Wealth Management, which provides brokerage and investment advisory services, financial and wealth planning services, stock plan administration services, annuity and insurance products, residential real estate loans and other lending products, banking, and retirement plan services; and Investment Management, which provides investment strategies and products.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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